LLM Book Knowledgebase

Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

24 min read

Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

Metadata

Highlights & Notes

One thing that Musk holds in the highest regard is resolve, and he respects people who continue on after being told no.

Musk came to see man’s fate in the universe as a personal obligation. If that meant pursuing cleaner energy technology or building spaceships to extend the human species’s reach, then so be it.

I came to the conclusion that really we should aspire to increase the scope and scale of human consciousness in order to better understand what questions to ask.”

“The only thing that makes sense to do is strive for greater collective enlightenment,”

Their kids were never punished, as Joshua believed they would intuit their way to proper behavior.

He listed The Lord of the Rings, Isaac Asimov’s Foundation series, and Robert Heinlein’s The Moon Is a Harsh Mistress as some of his favorites, alongside The Hitchhiker’s Guide to the Galaxy.

Outside of his studies, Elon would read the newspaper alongside Kimbal, and the two of them would identify interesting people they would like to meet. They then took turns cold-calling these people to ask if they were available to have lunch.

But for Musk, the distinction between stumbling into something and having intent is important.

I like to make technologies real that I think are important for the future and useful in some sort of way.”

It irritated Musk that Zip2 had become a behind-the-scenes player to the newspapers. He believed the company could offer interesting services directly to consumers and encouraged the purchase of the domain name city.com with the hopes of turning it into a consumer destination. But the lure of the media companies’ money kept Sorkin and the board on a conservative path, and they decided to worry about a consumer push down the road.

Musk still wanted to go the consumer route, but Proudian feared that would take too much capital.

I had to think, Okay, what are the things that affect how a team functions. The first obvious assumption would be that other people will behave like you. But that’s not true. Even if they would like to behave like you, they don’t necessarily have all the assumptions or information that you have in your mind. So, if I know a certain set of things, and I talk to a replica of myself but only communicate half the information, you can’t expect that the replica would come to the same conclusion. You have to put yourself in a position where you say, ‘Well, how would this sound to them, knowing what they know?’”

I might have fixed that thing but now I’ve made the person unproductive. It just wasn’t a good way to go about things.”

This left Musk searching for an industry that had tons of money and inefficiencies that he and the Internet could exploit. Musk began thinking back to his time as an intern at the Bank of Nova Scotia. His big takeaway from that job, that bankers are rich and dumb, now had the feel of a massive opportunity.

Later in life, as I competed against the banks, I would think back to this moment, and it gave me confidence. All the bankers did was copy what everyone else did. If everyone else ran off a bloody cliff, they’d run right off a cliff with them. If there was a giant pile of gold sitting in the middle of the room and nobody was picking it up, they wouldn’t pick it up, either.”

“Money is low bandwidth,” he said, during a speech at Stanford University in 2003, to describe his thinking. “You don’t need some sort of big infrastructure improvement to do things with it. It’s really just an entry in a database.”

“He’s willing to take an insane amount of personal risk. When you do a deal like that, it either pays off or you end up in a bus shelter somewhere.”

Musk also began to hone his trademark style of entering an ultracomplex business and not letting the fact that he knew very little about the industry’s nuances bother him in the slightest. He had an inkling that the bankers were doing finance all wrong and that he could run the business better than everyone else.

The only thing stopping them was reality.

Fricker would not be the last person to accuse Musk of overhyping products and playing the public, although whether this is a flaw or one of Musk’s great talents as a businessman is up for debate.

The technology issues X.com had been facing worsened as the computing systems failed to keep up with an exploding customer base. Once a week, the company’s website collapsed. Most of the engineers were ordered to start work designing a new system, which distracted key technical personnel and left X.com vulnerable to fraud.

“It wasn’t so much that I wanted to be CEO but more like, ‘Hey, I think there are some pretty important things that need to happen, and if I’m not CEO, I’m not sure they are going to happen.’

“He always works from a different understanding of reality than the rest of us,”

The rocket would cater directly to a theory in the space industry that a whole new market might open for both commercial and research payloads if a company could drastically lower the price per launch and perform launches on a regular schedule.

Musk said. “I’m not sure why I’d want to talk about extremely sad events. It does no good for the future. If you’ve got other kids and obligations, then wallowing in sadness does no good for anyone around you. I’m not sure what should be done in such situations.”

“A ground up internal development increases difficulty and the required investment, but no other path will achieve the needed improvement in the cost of access to space.”

“You’re twenty-four or twenty-five, and they’re trusting you with so much. It was very empowering.”

What Musk would not tolerate were excuses or the lack of a clear plan of attack.

thought it was more important to let him know quickly what happened, but I learned it was more important to have all the information.”

They were there all night and tested it again and it broke anyway.” Musk, clothes ruined, had decided the hardware was flawed, tested his hypothesis, and moved on quickly, asking the engineers to come up with a new solution.

These incidents were all part of a trying but productive process. SpaceX had developed the feeling of a small, tight-knit family up against the world.

surgery. “Elon can be very demanding, but he’ll make sure the obstacles in your way are removed,”

“There was always this feeling that we were facing a sort of insurmountable challenge and that we had to band together to fight the good fight.”

“They were smart, needed to get things done, and didn’t always have time to wait for things like city permits.”

Musk never relented in asking his employees to do more and be better, whether it was at the office or during extracurricular activities.

‘The longer you wait to fire someone the longer it has been since you should have fired them,’” Spikes said.

“Every person on that island was a fucking star, and they were always holding seminars on radios or the engine. It was such an invigorating place.”

The engineers were constantly baffled by what Musk would fund and what he wouldn’t. Back at headquarters, someone would ask to buy a $200,000 machine or a pricey part that they deemed essential to Falcon 1’s success, and Musk would deny the request. And yet he was totally comfortable paying a similar amount to put a shiny surface on the factory floor to make it look nice. On Omelek, the workers wanted to pave a two-hundred-yard pathway between the hangar and the launchpad to make it easier to transport the rocket. Musk refused. This left the engineers moving the rocket and its wheeled support structure in the fashion of the ancient Egyptians. They laid down a series of wooden planks and rolled the rocket across them, grabbing the last piece of wood from the back and running it forward in a continuous cycle.

“SpaceX is in this for the long haul and, come hell or high water, we are going to make this work.”

“Elon did a great job of not burdening people with those worries,” said Spikes. “He always communicated the importance of being lean and of success, but it was never ‘if we fail, we’re done for.’ He was very optimistic.”

But the more the Tesla guys researched the industry, the more they realized that the big automakers don’t even really build their cars anymore. The days of Henry Ford having raw materials delivered to one end of his Michigan factory and then sending cars out the other end had long passed. “BMW didn’t make its windshields or upholstery or rearview mirrors,” Tarpenning said. “The only thing the big car companies had kept was internal combustion research, sales and marketing, and the final assembly. We thought naïvely that we could access all the same suppliers for our parts.”

The plan the Tesla cofounders came up with was to license some technology from AC Propulsion around the tzero vehicle and to use the Lotus Elise chassis for the body of their car. Lotus, the English carmaker, had released the two-door Elise in 1996, and it certainly had the sleek, ground-hugging appeal to make a statement to high-end car buyers. After talking to a number of people in the car dealership business, the Tesla team decided to avoid selling their cars through partners and sell direct. With these basics of a plan in place, the three men went hunting for some venture capital funding in January 2004.

These efforts began in earnest on October 18, 2004, and, rather remarkably, four months later, on January 27, 2005, an entirely new kind of car had been built by eighteen people. It could even be driven around.

“The original plan had been to do the bare minimum we could get away with as far as making the car stylistically different from a Lotus but electric,” said Tarpenning. “Along the way, Elon and the rest of the board said, ‘You only get to do this once. It has to delight the customer, and the Lotus just isn’t good enough to do that.’”

Another testing procedure required that the Roadsters go into a special cooling chamber to check how they would respond to frigid temperatures. Not wanting to pay the exorbitant costs to use one of these chambers, the Tesla engineers opted to rent an ice cream delivery truck with a large refrigerated trailer. Someone would drive a Roadster into the truck, and the engineers would don parkas and work on the car.

Then the building owner wanted two years’ worth of advanced rent. Tesla had about $50 million in the bank and could have bought the building outright. “In Silicon Valley, you say you’re backed by a venture capitalist, and that’s the end of the negotiation,” Tarpenning said. “But everything was like that in Detroit. We’d get FedEx boxes, and they couldn’t even decide who should sign for the package.”

Throughout these early years, the engineers credited Eberhard with making quick, crisp decisions. Rarely did Tesla get hung up overanalyzing a situation. The company would pick a plan of attack, and when it failed at something, it failed fast and then tried a new approach.

“It felt at times like Elon was this unreasonably demanding overarching force,” said Berdichevsky. “The company as a whole was sympathetic to Martin because he was there all the time, and we all felt the car should ship sooner.”

“What we found out was that for really complicated things, you can do the work cheaper here and have less delays and less problems.”

Everyone knew the figure was wrong, but it got reported to the board anyway.

“Then came this profound moment where we were reminded that building the car was not about getting to an IPO or selling it to a bunch of rich dudes but because it might change what a car is.”

“Everyone knew that the person who starts a company is not necessarily the right person to lead it in the long term, but whenever that is the case, it’s not easy.”

What their relationship could not survive were the cost figures for the Roadster unearthed by Watkins. It looked to Musk as if Eberhard had grossly mismanaged the company by allowing the parts costs to soar so high. Then, as Musk saw it, Eberhard failed to disclose the severity of the situation to the board. While on his way to give a talk to the Motor Press Guild in Los Angeles, Eberhard received a call from Musk and in a brief, uncomfortable chat learned that he would be replaced as CEO.

A few months passed, and Eberhard remained pissed-off. Many of the Tesla employees felt like they were caught in the middle of a divorce and had to pick their parent—Eberhard or Musk.

He came to be seen more as an executor of Musk’s wishes than as a commanding, independent CEO.

While the customers complained a lot about the delays, they seemed to sense this passion from Musk and share his enthusiasm for the product. Only a handful of customers asked for their prepayments back.

“Elon got fired up and said we were going to do this intense cost-down program,” said Popple. “He gave a speech, saying we would work on Saturdays and Sundays and sleep under desks until it got done. Someone pushed back from the table and argued that everyone had been working so hard just to get the car done, and they were ready for a break and to see their families. Elon said, ‘I would tell those people they will get to see their families a lot when we go bankrupt.’ I was like, ‘Wow,’ but I got it. I had come out of a military culture, and you just have to make your objective happen.”

“Everyone could see it, and people lost their jobs when they didn’t deliver. Elon has a mind that’s a bit like a calculator. If you put a number on the projector that does not make sense, he will spot it. He doesn’t miss details.” Popple found Musk’s style aggressive, but he liked that Musk would listen to a well-argued, analytical point and often change his mind if given a good enough reason. “Some people thought Elon was too tough or hot-tempered or tyrannical,” Popple said. “But these were hard times, and those of us close to the operational realities of the company knew it. I appreciated that he didn’t sugarcoat things.”

One employee missed an event to witness the birth of his child. Musk fired off an e-mail saying, “That is no excuse. I am extremely disappointed. You need to figure out where your priorities are. We’re changing the world and changing history, and you either commit or you don’t.”

“Don’t worry about the methods or if they’re unsound. Just get the job done. It comes from Elon. He listens, asks good questions, is fast on his feet, and gets to the bottom of things.”

Tesla could survive the loss of some of these early hires. Its strong brand had allowed the company to keep recruiting top talent, including people from large automotive companies who knew how to get over the last set of challenges blocking the Roadster from reaching customers.

As Musk put it, “Try to imagine explaining that you’re investing in an electric car company, and everything you read about the car company sounds like it is shit and doomed and it’s a recession and no one is buying cars.” All Musk had to do to dig Tesla out of this conundrum was lose his entire fortune and verge on a nervous breakdown.

Enthusiastic employees were zipping about, fiddling with an assortment of machines. Young white-collar engineers interacted with blue-collar assembly line workers, and they all seemed to share a genuine excitement for what they were doing. “It felt like a radical start-up company,”

He would place this urgency that he expected the revenue in ten years to be ten million dollars a day and that every day we were slower to achieve our goals was a day of missing out on that money.”

The fairing opened up around the three-minute mark and fell back toward Earth. And, finally, around nine minutes into its journey, the Falcon 1 shut down just as planned and reached orbit, making it the first privately built machine to accomplish such a feat. It took six years—about four and half more than Musk had once planned—and five hundred people to make this miracle of modern science and business happen.

“There was a lot of schadenfreude at the time, and it was bad on so many levels. Justine was torturing me in the press. There were always all these negative articles about Tesla, and the stories about SpaceX’s third failure. It hurt really bad. You have these huge doubts that your life is not working, your car is not working, you’re going through a divorce and all of those things. I felt like a pile of shit. I didn’t think we would overcome it. I thought things were probably fucking doomed.”

“A bunch of Tesla employees wrote checks to keep the company going,”

“When you have scarcity, it naturally reinforces greed and leads to more interest,”

He saw a man who arrived in the United States with nothing, who had lost a child, who was being pilloried in the press by reporters and his ex-wife and who verged on having his life’s work destroyed. “He has the ability to work harder and endure more stress than anyone I’ve ever met,”

In regards to time, Musk may well set more aggressive delivery targets for very difficult-to-make products than any executive in history.

“Elon has always been optimistic,” Brogan said. “That’s the nice word. He can be a downright liar about when things need to get done. He will pick the most aggressive time schedule imaginable assuming everything goes right, and then accelerate it by assuming that everyone can work harder.”

As Brogan joked, Musk might forecast how long a software project will take by timing the amount of seconds needed physically to write a line of code and then extrapolating that out to match however many lines of code he expects the final piece of software to be. It’s an imperfect analogy but one that does not seem that far off from Musk’s worldview. “Everything he does is fast,” Brogan said. “He pees fast. It’s like a fire hose—three seconds and out. He’s authentically in a hurry.”

I certainly don’t try to set impossible goals. I think impossible goals are demotivating. You don’t want to tell people to go through a wall by banging their head against it. I don’t ever set intentionally impossible goals. But I’ve certainly always been optimistic on time frames. I’m trying to recalibrate to be a little more realistic. I don’t assume that it’s just like 100 of me or something like that. I mean, in the case of the early SpaceX days, it would have been just the lack of understanding of what it takes to develop a rocket. In that case I was off by, say, 200 percent. I think future programs might be off by anywhere from like 25 percent to 50 percent as opposed to 200 percent. So, I think generally you do want to have a timeline where, based on everything you know about, the schedule should be X, and you execute towards that, but with the understanding that there will be all sorts of things that you don’t know about that you will encounter that will push the date beyond that. It doesn’t mean that you shouldn’t have tried to aim for that date from the beginning because aiming for something else would have been an arbitrary time increase. It’s different to say, “Well, what do you promise people?” Because you want to try to promise people something that includes schedule margin. But in order to achieve the external promised schedule, you’ve got to have an internal schedule that’s more aggressive than that. Sometimes you still miss the external schedule. SpaceX, by the way, is not alone here. Being late is par for the course in the aerospace industry. It’s not a question of if it’s late, it’s how late will the program be. I don’t think an aerospace program has been completed on time since bloody World War II.

Musk guides his engineers into taking ownership of their own delivery dates. “He doesn’t say, ‘You have to do this by Friday at two P.M.,’” Brogan said. “He says, ‘I need the impossible done by Friday at two P.M. Can you do it?’ Then, when you say yes, you are not working hard because he told you to. You’re working hard for yourself. It’s a distinction you can feel. You have signed up to do your own work.”

One person putting in a sixteen-hour day ends up being much more effective than two people working eight-hour days together. The individual doesn’t have to hold meetings, reach a consensus, or bring other people up to speed on a project. He just keeps working and working and working.

One of my favorite things about Elon is his ability to make enormous decisions very quickly. That is still how it works today.”

The guiding principle at SpaceX is to embrace your work and get stuff done. People who await guidance or detailed instructions languish. The same goes for workers who crave feedback. And the absolute worst thing that someone can do is inform Musk that what he’s asking is impossible.

SpaceX, for example, would have written down all the steps needed to replace a filter—put on gloves, wear safety goggles, remove a nut—and then want to alter this procedure or use a different type of filter. The FAA would need a week to review the new process before SpaceX could actually go about changing the filter on the rocket, a lag that both the engineers and Musk found ridiculous.

If the rules are such that you can’t make progress, then you have to fight the rules.

At Tesla, there was no history, no baggage. There was just a vision of products that could change the world. Who wouldn’t want to be involved with that?”

The media reports from the day described the car as the love child of an Aston Martin and a Maserati. In reality, the sedan barely held together. It still had the base structure of a Mercedes CLS, although no one in the press knew that, and some of the body panels and the hood were stuck to the frame with magnets. “They could just slide the hood right off,” said Bruce Leak, a Tesla owner invited to attend the event. “It wasn’t really attached.

The savvy engineers knew better than to go into a meeting and deliver bad news without some sort of alternative plan at the ready.

We told him that if he wanted the car in thirty days it would require hiring some new people, and we presented him with a stack of resumes. You don’t tell Elon you can’t do something. That will get you kicked out of the room. You need everything lined up. After we presented the plan, he said, ‘Okay, thanks.’ Everyone was like, ‘Holy shit, he didn’t fire you.’”

‘Take it down to the physics,’”

Like Steve Jobs before him, Musk is able to think up things that consumers did not even know they wanted—the door handles, the giant touch-screen—and to envision a shared point of view for all of Tesla’s products and services.

“Elon holds Tesla up as a product company,” von Holzhausen said. “He’s passionate that you have to get the product right. I have to deliver for him and make sure it’s beautiful and attractive.”

During my 2012 visit to the design studio, Tesla had a number of competitors’ vehicles in the parking lot nearby, and Musk made sure to demonstrate the limitations of their seating compared to the Model X. He tried with honest effort to sit in the third row of an Acura SUV, but, even though the car claimed to have room for seven, Musk’s knees were pressed up to his chin, and he never really fit into the seat. “That’s like a midget cave,” he said. “Anyone can make a car big on the outside. The trick is to make it big on the inside.” Musk went from one rival’s car to the next, illuminating the vehicles’ flaws for me and von Holzhausen. “It’s good to get a sense for just how bad the other cars are,” he said.

Musk, though, approaches everything from a Platonic perspective. As he sees it, all of the design and technology choices should be directed toward the goal of making a car as close to perfect as possible. To the extent that rival automakers haven’t, that’s what Musk is judging. It’s almost a binary experience for him. Either you’re trying to make something spectacular with no compromises or you’re not. And if you’re not, Musk considers you a failure. This position can look unreasonable or foolish to outsiders, but the philosophy works for Musk and constantly pushes him and those around him to their limits.

“I may have been optimistic with respect to the timing on some of these things, but I didn’t over-promise on the outcome,” Musk told me during an interview after the Model S launch. “I have done everything I said I was going to do.”

What separated Tesla from the competition was the willingness to charge after its vision without compromise, a complete commitment to execute to Musk’s standards.

What’s more, SolarCity is a key part of what can be thought of as the unified field theory of Musk. Each one of his businesses is interconnected in the short term and the long term. Tesla makes battery packs that SolarCity can then sell to end customers. SolarCity supplies Tesla’s charging stations with solar panels, helping Tesla to provide free recharging to its drivers. Newly minted Model S owners regularly opt to begin living the Musk Lifestyle and outfit their homes with solar panels. Tesla and SpaceX help each other as well. They exchange knowledge around materials, manufacturing techniques, and the intricacies of operating factories that build so much stuff from the ground up.

Even later in life when my grandmother knew there was really no possibility of her going hungry, she always had this thing about food. With Tesla, I decided to raise a huge amount of money just in case something terrible happens.”

Musk has decided that man’s survival depends on setting up another colony on another planet and that he should dedicate his life to making this happen.

When Musk announced in 2014 that Tesla would open-source all of its patents, analysts tried to decide whether this was a publicity stunt or if it hid an ulterior motive or a catch. But the decision was a straightforward one for Musk. He wants people to make and buy electric cars. Man’s future, as he sees it, depends on this. If open-sourcing Tesla’s patents means other companies can build electric cars more easily, then that is good for mankind, and the ideas should be free. The cynic will scoff at this, and understandably so. Musk, however, has been programmed to behave this way and tends to be sincere when explaining his thinking—almost to a fault.

As Page puts it, “Good ideas are always crazy until they’re not.” It’s a principle he’s tried to apply at Google.

“The way Elon talks about this is that you always need to start with the first principles of a problem. What are the physics of it? How much time will it take? How much will it cost? How much cheaper can I make it?

Backlinks